A HEAVY BURDEN

Evening Post, Volume CXI, Issue 94, 22 April 1931, Page 10

A HEAVY BURDEN

HOSPITAL FINANCE

THE CUT IN SUBSIDIES

GOVERNMENT CIRCULAR

The increased burden placed on hospital boards through unemployment relief and provision for midwifery cases was stressed at the special meeting of the Wellington Hospital Board to-day during discussion on the estimates and levies for this year, in-comparison, with the past year. ■. .

The chairman (Mr. P. CastleVsaid an increase was anticipated'in the-cost of unemployment relief. The board was spending at a very,-high rate now and it could not risk cutting down its estimate to the limit, suggested by. the Department, so that; the onus of cutting down the board's estimates., if they were above the .limit desired by the Department must rest with the Minister. . (Hear,' hear.)'. . . Salaries and wages''had been cut 10 per cent., and the pruning knife had been applied to expenditure. ;. Mr. S. Petherick' said: he • did- ,not think it was ever intended that hospital boards should have- to carry the liability of-assisting the unemployed. That had been pushed on to the board, and the board had had to do its best, but it should be remembered by the Government. that it was impossible to dress up a man' in a boy's suit and make him look respectable. He could not see that the work of the Social Welfare Department could 'be carried on at a less amount- than had been estimated. In addition to relief to the unemployed, midwifery eases were now also being passed on to the Social Welfare Department. -The cost, of those cases was £10 or fill per case. , \

Mrs. Preston said, she agreed that the Department was imposing. a' heavy burden on the "Social, Welfare: Department. She referred to two circular letters received from the Director-General of.- Health, and said she hoped the terms of the letters would not- be accepted' until' an agreement had been come to.

In the first of the letters referred to by Mrs. Preston it was stated that- substantial' curtailment was required of estimates for hospital purposes. Cabinet had.named a definite total sum as the maximum to be available for all subsidies payable under the Act to hospital boards and separate institutions during the';year. . With.the present, relative contributions from local rates and the Consolidated"" Fund . respectively (that_Avas adhering to the.present scale of. subsidies) it was found that the total net estimated maintenance expenditure of all boards must n6t exceed £1,040,000, as against £1,220,000 for the year just ended. To meet the position. it . had been found necessary to name for each board the maximum amount of its net estimated1 maintenance expenditure in - the'current year, such.amount being based oil the. allocation of the total of . £l; 040,000. The amount named in the case of the Wellington Board was £129,789.

The second letter from the DirectorGeneral of Health pointed out that estimates'should not bo submitted for the approval of the-Minister until they had been balanced, within- the prescribed limits, as it was. impossible to obtain further money for hospital board subsidies. ... The estimates should not show estimated increased ' expenditure ' for outdoor, relief, as' the Unemployment Board should to some, extent relieve boards of expenditure in that direction. It was impossible to. forecast the demands, in this connection, .but • it' was suggested that provision for unemployment relief should be 'approximately 90 per cent, of the provision last year.. ■ Mr. Castle said: the board's, attitude was tantamount, .to1 one. of refusal to. accept the ; terms. The-letters, were circulars. They did not contain instructions, but recommendations. "We don't necessarily accept, them," he'said. "We receive them:" ■ '• T .. ,■. • "■:

Mi\ Campbell', endorsed the remarks of Mr.'Petherick. : , ~ •■•'" Miv CM."Luke said, that the boardhad reduced its estimates to a, point i,bordering: on\;the; danger line, almost. Sometimes he ..felt, a little discouraged and disheartened,,.but he thought, it, was far better for them to do the best' they could under the circumstances, f RELIEF ESTIMATE.

' "li'or this year," said 'Mr. : Castle, "the gross ordinary estimated expenditure" is £199,154, which is £2002 below the actual expenditure for the' year just ended. For hospital purposes it is,estimated that £7551 less than last year's actual 'expenditure. will,be required. As, however, unemployment relief is rapidly increasing, the estimate for last year ( £-30,000) under the heading of 'Social Welfare,' has been increased' by £15,000, or a total of £45j000. The burdcii of .unemployment relief on-local ratepayers;.-is- rapidly* becoming heavier, and.'it .is quite time the Government considered making special grants; fc>r this purpose, 'for under our present system of hospital .finance the burden is falling heavily on certain hospital districts, owing to the unemployed flocking to the larger centres of population. Thus, that part of the cost of unemployment' relief borne by the ratepayers is not distributed equitably. ,"' ■. ; '...■ -.. , ' ■..;■'■ ;

"The estimates this year have,, as usual, been carefully considered, and we are estimating to require £ 16,166 less for hospital .purposes than the amount provided. last year, but if it is thought the amount provided for relief purposes is tod high, then the'board feels compelled under the circumstances to ask the Government to take the responsibility of reducing,the estimate of £45,000, which is £557S above actual amount expended.

"For.;, capital purposes the estimate is £941.4, which .is. much lower, than usual, and as £8864 of this is for sinking fund and repayment of loans, it will be understood that capital expenditure this year is reduced to a minimum. ■ LEVIES ANP SUBSIDY. "The estimates as framed will mean a reduction in levies of ■■ £6596, the apportionment amongst the contributing bodies being stated in the schedule; The percentage' reduction in'levies this year is BJ-per cent. The reduction for Wellington City Council is, £5564. The reduction in Government subsidy is .£7494 13s' lid. : '.'■'.

Mr. A. M'Curdy said, that the estimates were based oil a levy .of 255-1000 d. in- the £ of capital rateable value. The total levy Was £6595 6s Id less than in 1930-31, even though the' social .welfare estimate had been increased by £ 15,000.'. It-had been asserted by an anonymous correspondent in the Press that the city and boroughs contributed 23 per' cent, of the total levy and the counties 77 per cent. The percentages, however,'were: Cit yand boroughs, 93 per cent.; couuties (Hutfand Makara),'7 per cent.